Citibank going down ????????????

[lordbyroniv]

is Citibank going down tonight ?

 

[Poker]

they would go BR very soon if the gov't didnt get involved, but they will...

 

[copper]

What's so special about tonight?
Are you saying meeting today will end bankrupting citi?

 

[stewie]

Gov will save Citi... IMO

:yo:

 

[Arrogance]

Agree with you on the gov bailout stewie. Funny part is Citi is still sending me CC offers as recently as last week

more info

http://www.iht.com/articles/2008/11/24/business/24citibank.php

 

[Donald Aquilano]

Citigroup is to big to fail as far as the government is concerned. IMO if you can't make it then you go chapter 11 that's why we have it in the first place. You have to let businesses fail its the way are system works.

 

[draggar]

http://money.cnn.com/2008/11/23/news/companies/citigroup/index.htm?postversion=2008112400

NEW YORK (CNNMoney.com) -- The U.S. government on Sunday announced a massive rescue package for Citigroup - the latest move to steady the banking giant, whose shares have plunged in the past week.
Citigroup shares rose 33% in premarket trading Monday.
The plan has two key features:
First, the U.S. Treasury and the Federal Deposit Insurance Corporation (FDIC) will backstop some losses against more than $300 billion in troubled assets.
Second, the Treasury will make a fresh $20 billion investment in the bank. The government has already injected $25 billion into Citigroup as part of the $700 billion bailout passed by Congress in October

Looks like they aren't completely gone.

What I've noticed is that while the executives of these corporations cry poor, they still openly live lavish lifestyles while cutting back what their hard working employees get making them tighten their belts even further than where they should be.

AIG executives spent hundreds of thousands of dollars on retreats, spas, hunting retreats, even while they were even asking for more money.
Auto executives flew in their private jets to beg for money (OK, here's a hint - sell the jets and fly coach like the rest of us).

 

[steveto]

While these execs to get paid a lot, many of their decisions make or break a company. Usually, these jobs are not long lasting. Maybe are canned or repositioned within the company a few years down the road. To me, I think it's fine to get paid that much, if what they do, makes the company money. In this circumstance, they're pretty screwed and probably have to take a BIG hit if they want to keep their job and also get some funding. Now, not all big companies do these lavish things, but I mean..you are CEO of a big company..come on...there are perks to having thejob..that's just understandable.

I recently was sitting beside the CEO of a fortune 50 company..I didn't know it till the end of the flight..and I was like..umm..don't you have a private jet or anything? (we assume they will take it...but we also ***** when they do...). Anyway, he answered as saying it is our company policy not to have a private jet or any large luxuries as that. Sure he gets picked up at the airport in a company limo, but anything overboard, his company does not do. I was also offered a job, but I turned it down as my career path was going in a different tangent, but I got his card.

 

[DomainsInc]

one thing for sure, is that those who have inside information before its released to the public can surely make a killing getting in before the price goes up after bailouts are announced.

 

[Gerry]

is Citibank going down tonight ?

Nope...they went down over the weekend.

Closed Friday down 60% and dropped to 16 year low.

Talk over the weekend was they were poison.

-------------------------------------------

On the other hand, I am VERY CONCERNED with all the cash be spread around and with Paulson's change of plans AFTER the bailout package was approved that there is NO incentive for banks and BIG S&L to post a real profit.

This whole thing smacks of purposely and willingness to COOK THE BOOKS in a totally OPPOSITE manner to show a loss.

Could we be on the cusp of a NEW TYPE OF FRAUD?

Willfully change the bottom line to show a lose, scoop up devalued stock at a bargain, get a bailout gift, and have a turnaround?

Hmm...stay tuned.

 

[zangief]

It is like standing agaist a flood imo , if every business that fails will be rescued then why should they try to be succesfull ?
In the long run all of these will push the dollar downwards.

 

[draggar]

one thing for sure, is that those who have inside information before its released to the public can surely make a killing getting in before the price goes up after bailouts are announced.

That is also illegal and can get you thrown in jail (a.k.a. insider trading).

 

[Gerry]

That is also illegal and can get you thrown in jail (a.k.a. insider trading).

Only if caught. And only if stupid people do stupid things.

There are many ways to get caught.

But if I purposely allow stock to become devalued and then have an inner circle buy at extremely deflated share price it is much more difficult to prove unless someone opens their mouth.

It would be interesting to track Citi's exec selling history over the past few months and then have Citi announce a huge stock buy-back to "add credibility to the viable of the institution" or some hype.

That is why I fear a purposeful devaluation of stock and a new twist of an old crime - instead of falsely inflating the company's bottom line (ala Enron) the intentional false stating of impending doom to garner a fed bailout.

 

[DomainsInc]

That is also illegal and can get you thrown in jail (a.k.a. insider trading).

Sure but the actual % that get caught is very small.

 

[draggar]

It would be interesting to track Citi's exec selling history over the past few months and then have Citi announce a huge stock buy-back to "add credibility to the viable of the institution" or some hype.

That is why I fear a purposeful devaluation of stock and a new twist of an old crime - instead of falsely inflating the company's bottom line (ala Enron) the intentional false stating of impending doom to garner a fed bailout.

It's been close to proven that this goes on. Odd that days before the Yahoo / MS deal was going to be announced (months ago) there was a good amount of trading. I even see this with my own company. Large amounts of movement just before big news is made.

I've noticed a trend:

Bad news (pushes stock down) - very bad news (pushes the stock even further) - EXCELLENT NEWS!! If you usually look at the stock's movements 24-48 hours before the "excellent news" you'll see a good amount of activity.

It is a carefully planned scheme to make money. The MS / Yahoo merger would have been in talks for months before the news was made public so the announcements of layoffs were made with that in mind.